<p>
    We first sort all companies that have fundamental data by their Book-to-Market ratio, and narrow our universe to the
    bottom quartile. We measure the Book-to-Market ratio using
    <strong>fine.FinancialStatements.BalanceSheet.NetTangibleAssets.TwelveMonths</strong> divided by
    <strong>fine.MarketCap</strong>. In this strategy, we will use Technology as the industry of choice, thus, we further
    narrow this universe to Technology stocks only.
</p>

<p>
    For each of the conditions that are described below, if met, one point will be added to the G-Score.
    Thus, with seven factors, our G-Score can range from 0 to 7. We evaluate a company based on the following:
</p>


<ul>
    <li>
        <em>The Return on Assets (ROA) is greater than the contemporaneous industry median. In other words, the ROA for
        the analyzed company is greater than the median of the ROAs of all companies in the same industry</em> <br>
        We measure this value using <strong>fine.OperationRatios.ROA.OneYear</strong>
    </li>
    <li>
        <em>The Cash Flow Return on Assets (CFROA) is greater than the contemporaneous industry median</em> <br>
        We measure this value using <strong>fine.FinancialStatements.CashFlowStatement.OperatingCashFlow.TwelveMonths</strong>
        divided by<strong> fine.FinancialStatements.BalanceSheet.TotalAssets.TwelveMonths</strong>
    </li>
    <li>
        <em>The CFROA is greater than the ROA</em>
    </li>
    <li>
        <em>The Variance of the ROA (VARROA) is lower than the contemporaneous industry median</em> <br>
        We measure this by storing the past twelve values of <strong>fine.OperationRatios.ROA.ThreeMonths </strong>in a
        <strong>RollingWindow</strong> and computing the variance of the values in the <strong>RollingWindow</strong>
    </li>
    <li>
        <em>The Research and Development Expenditure (R&D) is higher than the contemporaneous industry median</em> <br>
        We measure this using <strong>fine.FinancialStatements.IncomeStatement.ResearchAndDevelopment.TwelveMonths</strong>
    </li>
    <li>
        <em>The Capital Expenditure (CapEx) is higher than the contemporaneous industry median</em> <br>
        We measure this using <strong>fine.FinancialStatements.CashFlowStatement.CapExReported.TwelveMonths</strong>
    </li>
    <li>
        <em>The Advertisement Expenditure (Ad) is higher than the contemporaneous industry median</em> <br>
        We measure this using <strong>fine.FinancialStatements.IncomeStatement.SellingGeneralAndAdministration.TwelveMonths</strong>
    </li>
</ul>

<p>
    The fundamental data used in our algorithms is sourced from MorningStar, and to read more about our fundamental data,
    please visit the <a href="https://www.quantconnect.com/docs/data-library/fundamentals">Fundamentals</a> section of our
    documentation.
</p>

<p>
    Once we have computed the G-Scores for each of the securities, we long the securities with G-Scores of 5 or higher.
</p>

